- The company has fixed a price band of Rs 415-436 a share
- The three-day initial share sale would close on April 6, 2023, and the bidding for anchor investors will open on March 31
- Bids can be made for a minimum of 34 Equity Shares and in multiples of 34 Equity Shares thereafter
- We have six major clients, including eInfochips, in Gujarat: Kunhamed Bicha, CMD, Avalon Technologies Limited.
NE BUSINESS BUREAU
AHMEDABAD, MAR 30
Chennai-based Avalon Technologies Limited, one of the leading fully integrated Electronic Manufacturing Services (EMS) companies, plans to launch its initial public offering (IPO) of 19,839,450 equity shares with a face value of Rs 2 each subject to a maximum value of Rs 865 crore, top company officials said.
A fresh issue of equity shares with a maximum value of Rs 320 crore and an offer for sale (OFS) equity shares with a maximum value of Rs 545 crore make up the initial public offering. The IPO size has been reduced to Rs 865 crore from Rs 1,025 crore earlier as the company completed a pre-IPO placement of Rs 160 crore.
The band of the offer’s price for equity shares is fixed at Rs 415 to Rs 436. A minimum of 34 equity shares should be offered, and after that, bids can be made in multiples of 34 equity shares. The deadline for the anchor investor bid is Friday, March 31, 2023. The subscription period for the offer begins on Monday, April 3, 2023, and ends on Thursday, April 6, 2023.
The offer for sale comprises equity shares aggregating up to Rs 131 crore of Kunhamed Bicha and up to Rs 172 crore of Bhaskar Srinivasan; the “Promoter Selling Shareholders”; up to Rs 16 crore of T P Imbichammad; up to Rs 10 crore of Mariyam Bicha; up to Rs 75.5 crore of Anand Kumar; up to Rs 65 crore of Sareday Seshu Kumar and up to Rs 75.5 crore of Luquman Veedu Ediyanam.
Avalon Technologies said it proposes to utilize the net proceeds of the fresh issue towards the funding of prepayment or repayment of all or a portion of certain outstanding borrowings availed by the company and one of the material subsidiaries, i.e. Avalon Technology and Services Private Limited estimated to be Rs 145 crore; funding the working capital requirements of the company estimated to be Rs 90 Cr; and balance amount towards general corporate purposes.
“We have six major clients, including eInfochips, in Gujarat. To cater to their needs, we will take a call on setting up our new plant in Gujarat after the IPO,” said Kunhamed Bicha, CMD, Avalon Technologies Limited.
The company has 12 manufacturing units located across the US and India. Some of its key clients include Kyosan India, Zonar Systems Inc, Collins Aerospace, and eInfochips, among others. The company’s other capabilities include cable assembly and wire harnesses, sheet metal fabrication, machining, magnetics, and injection molded plastics.
For the period ended November 2022, the company recorded revenue of Rs 584 crore, while profit after tax (PAT) stood at Rs 34 crore.
It is proposed for the equity shares to be listed on recognised stock exchanges, namely the BSE and NSE. The designated stock exchange for the offer is the NSE.
JM Financial Limited, DAM Capital Advisors Limited, IIFL Securities Limited and Nomura Financial Advisory and Securities (India) Private Limited are the Book Running Lead Managers to the public offer.
